Sustainable Procurement Policy

Sustainable Procurement Policy

The Cosmo Energy Group Management Vision is, “In striving for harmony and symbiosis between our planet, man and society, the Cosmo Energy Group aims for sustainable growth towards a future of limitless possibilities.” As part of our efforts to achieve this vision, the Cosmo Energy Group Code of Conduct stipulates the Group’s responsibility to fulfill its social responsibilities across all supply chains by ensuring legal compliance, fair transactions, respect for human rights, and environmentally responsible operations. This Sustainable Procurement Policy is based on our Management Vision and Code of Conduct and outlines our basic approach to fulfilling our social responsibilities across supply chains to help build a sustainable world.

1. Legal compliance

When carrying out procurement, we comply with the relevant national and regional laws and regulations, as well as social norms, while also respecting the natural environment, culture, and customs of the societies concerned. Also, we do not seek personal benefit from relationships with business partners, and we never give or receive entertainment or gifts for the purpose of improper trading. In addition, any confidential information belonging to business partners obtained through purchase transactions is kept confidential, and we do not engage in purchasing that infringes on the intellectual property rights of third parties.

2. Fair transactions and equal opportunity

We provide fair supplier opportunities for striving to build relationships of trust and mutual understanding. This includes sharing information on procurement with business partners in a timely and appropriate manner. We do not engage in unfair transaction practices, refuse contract delivery, delay payment, or impose unreasonable terms of business.

3. Socially responsible procurement

When procuring products and services, we maintain awareness of the Group’s corporate social responsibilities at all supply chain levels. Specifically, we focus on the following:

  • Measures to ensure safety such as quality and accident prevention
  • Measures to respect human rights, ensure occupational health and safety, and improve working environment
  • Measures of environmental conservation and consideration

4. Evaluation and selection of business partners

We select business partners via comprehensive and rational assessments based not only on criteria including quality, delivery timeframe, price, technical capabilities, management stability, but also sustainability activities. We take steps to suspend business transactions with business partners if they engage in legal violations that have a major impact on society and fail to rectify the situation.

5. Mutual development (partnerships)

We build cooperative relationships with suppliers, seeing them as important business partners and seeking mutual prosperity. While respecting the position of our business partners, we encourage them to practice conduct consistent with the Cosmo Energy Group Code of Conduct and to comply with the Group’s policies on human rights, the environment, compliance, etc.

6. Ensuring transparency

When selecting business partners, we fairly disclose the information and conditions required to engage in transactions. As necessary, we also inform suppliers of the reasons when they are not selected.

Established: October 29, 2019

Revised: February 10, 2022